Small Cap Feast

Small Cap Feast – 19 June 2019

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

Trainline—Seeking £75m raise. Proceeds to target a net debt at IPO of c.2x LTM Adjusted EBITDA). In FY 2019, Trainline achieved net ticket sales of £3.2bn, and revenue of £210m.  Due June

Airtel Africa Limited — provider of telecommunications and mobile money services, with a presence in 14 countries in Africa, primarily in East Africa and Central and West Africa, looking to join the premium segment of the main market. Offer TBC, expected TBC

ReAssure Group plc  –  The Group is a leading closed book life insurance consolidator in the United Kingdom with 4.3m policies, £68.7 billion of assets under administration on a Post-L&G Illustrative Basis. It is considering a premium listing segment of the main market.

Main Market (Standard)

IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas which have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. TBC


Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019

Argentex a UK-based forex service provider founded in 2011 by its current management team which operates as a Riskless Principal for non-speculative and forward foreign exchange as structured financial derivatives is looking to join AIM. Offer TBC, expected 25 June

Rumours & Speculation

Neptune Surf Technology plc*, a vertically integrated lifestyle accessory group focused on the surf market, designing its own high-performance wetsuits and surfing hardware and distributing these together with third party brands globally with key markets being Europe, Australia and USA and Brazil, is looking to join AIM and ‘is planning an £11m float’ according to The Sunday Telegraph.

Breakfast Buffet

Reabold Resources (RBD.L) 1.02p £40.14m

Reabold, the investing company which focusses on investments in pre-cash flow upstream oil and gas projects, provided further information in relation to the initial drilling results of the West Newton A-2 appraisal well, announced on 17 June 2019.

The West Newton A-2 well was designed to appraise the discovery identified by the West Newton A-1 well, drilled in 2013/2014 within the onshore UK licence PEDL183, which is expected to be further tested with an extended well test during Q3 2019. A Competent Person’s Report prepared by Deloitte LLP Calgary, as at 1 June 2017, for Connaught Oil and Gas Limited, confirmed Connaught’s resource assessment for the licence following the drilling of the discovery well, in accordance with the Petroleum Resource Management System 2007. The initial assessment of the West Newton discovery was summarised at the time of Reabold’s investment in Rathlin, on 5 Nov 2018.


Blue Prism (PRSM.L) 1,726p £1,349.7m

Blue Prism announced that it has entered into an agreement to acquire the entire issued share capital of Thoughtonomy for an aggregate consideration of up to £80m.

Thoughtonomy is a software-as-a-service (SaaS) based product and cloud services business that combines Blue Prism’s robotic process automation (RPA) platform alongside additional embedded and integrated artificial intelligence (AI) and cloud capabilities, including Computer Vision, Natural Language Processing and Machine Learning to provide a cloud-based, on-demand, intelligent automation platform. Additional features include ready-to use channel interfaces such as chatbots and web-forms and an integrated AI-enabled digital workforce manager.

For the twelve months to 30 April 2019, Thoughtonomy had reported revenues of £9.8m and an adjusted operating loss of £(3.6)m. Adjusted revenues for the same period were £7.4m. Gross assets at 31 May 2018 were £5.6m.


Origin Enterprises (OGN.L) 5.39p £603.6m

Origin Enterprises, the Agri-Services Group, issued this Trading Update for the nine-month period to 30 April 2019, in advance of its final results which are scheduled to be announced on 25 Sept 2019.

11.4% increase in underlying revenue1 in the third quarter (12.5% year-to-date)

10.9% underlying growth in volumes for the third quarter (9.5% year-to-date)

Over 900,000 hectares on-boarded onto the Group’s digital agronomy platform

Completion of acquisition of 20% interest in Brazilian-based agronomy service and crop input distribution business Ferrari Zagatto

Full year earnings guidance in adjusted diluted earnings per share of between 51.5 and 52.5 cent


PetroTal Corp (PTAL.L) 17p £107.37m

PetroTal Corp announced the third oil well in the Bretaña field is online, bringing total field current production to over 5,000 barrels of oil per day.

BN 95-3D well had initial production of 3,500 BOPD

Full field Bretaña production is now over 5,000 BOPD, in line with guidance

Deviated completion to optimize cash flow, with option to sidetrack horizontally in 2020

BN 95-3D is Company’s first well completed with an electric submersible pump

BN 95-3D expected to come in under budget

Company will immediately begin drilling BN 95-2WD water disposal well

Following the 2WD, recompletion of the existing water disposal well as an oil producer will commence


ULS Technology (ULS.L) 75p £51.96m

ULS Technology, the provider of online technology platforms for the UK conveyancing and financial intermediary markets, announced its Full Year results for the 12-month period to 31 March 2019.

Revenue £30m (FY 2018: £30.7m)

Gross Profit £12.5m (FY 2018: £12.5m)

Underlying EBITDA £6.3m (FY 2018: £6.4m)

Underlying Profit PBT £5.4m (FY 2018: £5.5m)

Underlying EPS 6.9p (FY 2018: 7.2p)

Net debt £2.9m (FY 2018: £1.9m)

Proposed dividend of 1.2p per share taking the total for the year to 2.4p per share (FY 2018: 2.3p per share)


ECO Animal Health (EAH.L) 372p £237.14m

ECO Animal Health, leader in the development, registration and marketing of pharmaceutical products for global animal health markets, announced results for the year ended 31 March 2019.

Sales 11% higher at £74.6m (2018: £67.2m)

Adjusted EBITDA higher at £20.1m (2018: £19.6m)

PBT 10% higher at £15.2m (2018: £13.9m)

Profit after taxation 16% higher at £13.6m (2018: £11.6m)

EPS 24% higher at 17.60p (2018: 14.19p)

Dividend 20% higher at 11.04p (2018: 9.2p)

Special dividend of 3.5p paid in Jan 2019

Strong cash generation from operations of £13.3m (2018: £15.8m)

Net cash lower at £18.1m (2018: £21.3m)


KRM22 (KRM.L) 76.5p £14.61m

KRM22, the technology and software investment company, with a particular focus on risk management in capital markets, announced that it has signed a partnership with Neotas Ltd. The partnership agreement allows KRM22 to distribute and support Neotas’s enhanced due diligence application through the Global Risk Platform.

Neotas provides enhanced due diligence and online reputation screening on individuals and firms to identify conduct risk, prevent financial crime and to comply with the latest regulatory guidelines including SMCR and AML. Using machine learning and natural language processing, Neotas searches all open web sources including social media platforms, online chatrooms, legal records and deep and dark web sources.


Mattioli Woods (MTW.L) 805p £215.5m

Mattioli Woods, the specialist wealth management and employee benefits business, announced the completion of the agreement with Amati Global Investors Limited to cancel the option to acquire the remaining 51% of its issued share capital.  As announced on 5 Feb 2019, given the success of the current arrangement, the Group believes that retaining a minority interest in the joint venture offers the optimal structure for all stakeholders. Accordingly, the Group agreed to cancel the Option in return for a payment of £0.75 million from the management team.


Inspired Energy (INSE.L) 14.75p £103.8m

Inspired Energy, a leading UK energy procurement consultant to UK and Irish corporates, will hold its AMG today where Chairman, Michael Fletcher, will provide the following update on current trading:

“I am pleased to report that Inspired Energy has had a strong first half of the year, as the Group continues to deliver on its stated growth strategy, trading in line with the Board’s expectations and further building on a strong 2018. The integration of Inprova Finance Limited, acquired in December 2018, is progressing well and is performing in line with management’s expectations. The enlarged platform further underpins the strength of our Corporate Division and the benefit we provide clients in order for them to optimise the value of every pound spent on utilities.

“We move into the second half with good visibility and confidence of further progress over the remainder of the year. The continued momentum is testament to the strong team we have in place to drive the growth of the Group as it moves to the next stage of development.”


Mulberry Group (MUL.L) 267.5p £160.6m

Mulberry Group, the British luxury brand, announced its results for the 53 weeks ended 30 March 2019

Revenue of £166.3m (2018: £169.7m) with International up 7% and UK down 6%

Adjusted PBT of £1m (2018: £8m)

Reported loss before tax of £5m (2018: PBT of £6.9m)

Adjusting items of £6m (2018: £1.1m)

Inventory reduced by 11% to £39.7m (2018: £44.6m)

Dividend 5p per share (2018: 5p)

New subsidiaries established in Japan and South Korea

Digital sales increased by 27%, representing 22% of Group revenue (2018: 17%)

Direct to customer strategy progressed through successful conversion of John Lewis from Wholesale to Retail with approximately 90% of Group revenue now generated through Mulberry channels

Disruption from House of Fraser administration materially affected the Group’s UK performance

Lifestyle offering enhanced with successful launch of eyewear collection under license during Feb 2019


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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